A BILL to amend and reenact §11-16-13 of the Code of West Virginia,
1931, as amended, relating to increasing the barrel tax on
nonintoxicating beer.

Be it enacted by the Legislature of West Virginia:

That §11-16-13 of the Code of West Virginia, 1931, as

amended, be amended and reenacted to read as follows:

ARTICLE 16. NONINTOXICATING BEER.

§11-16-13. Barrel tax on nonintoxicating beer.

(a) There is hereby levied and imposed, in addition to the
license taxes provided for in this article, a tax of five dollarsand fifty cents$11 on each barrel of thirty-one gallons and in
like ratio on each part barrel of nonintoxicating beer manufactured
in this state for sale within this state, whether contained or sold
in barrels, bottles or other containers, and a like tax is hereby
levied and imposed upon all nonintoxicating beer manufactured
outside of this state and brought into this state for sale within
this state; but no nonintoxicating beer manufactured, sold or
distributed in this state is subject to more than one barrel tax.
The brewer manufacturing or producing nonintoxicating beer within
this state for sale within this state shall paypays the barrel tax
on such nonintoxicating beer, and, except as provided otherwise,
the distributor who is the original consignee of nonintoxicating
beer manufactured or produced outside of this state, or who brings
such nonintoxicating beer into this state, shall paypays the
barrel tax on such nonintoxicating beer manufactured or produced
outside of this state: Provided, That the barrel tax imposed by
this section shalldoes not apply to nonintoxicating beer
manufactured by a brewpub.

(b) On or before the tenth day of each month during the
license period, every brewer or operator of a brewpub who
manufactures or produces nonintoxicating beer within this state
shall file a report in writing, under oath, to the Tax
Commissioner, in the form prescribed by the Tax Commissioner,
stating its total sales, or in the case of a brewpub, its total
estimated production of nonintoxicating beer within this state
during that month, and at the same time shall paypays the tax
levied by this article on such production. On or before the tenth
day of each month during the license period, every distributor who
is the original consignee of nonintoxicating beer manufactured or
produced outside this state or who brings such beer into this state
for sale shall file a report in writing, under oath, to the Tax
Commissioner, in the form prescribed by the Tax Commissioner,
stating its total estimated purchases of such nonintoxicating beer
during that month, and at the same time shall pay the tax thereon
levied by this article for such estimated monthly purchase:
Provided, That the Tax Commissioner may allow, or require, a brewer
who manufactures or produces nonintoxicating beer outside this
state to file the required report and pay the required tax on
behalf of its distributor or distributors. Any brewer or
distributor or operator of a brewpub who files a report under this
subsection may adjust its monthly estimated sales or purchases or
production report or reports by filing amended reports by the
twenty-fifth day of the reporting month.

(c) Every brewer or distributor or operator of a brewpub who
files a report under subsection (b) of this section shall file a
final monthly report of said sales or purchases or production, in
a form and at a time prescribed by the Tax Commissioner, stating
actual nonintoxicating beer sales, purchases, or production and
other information which the Tax Commissioner may require, and shall
include a remittance for any barrel tax owed for actual sales or
purchases or production made in excess of the amount estimated for
that month.

(d) Any brewer or distributor or operator of a brewpub who
files a report pursuant to subsection (b) of this section
reflecting an underestimation of twenty-five percent or more of
actual sales or purchases or production of nonintoxicating beer as
shown by the report filed pursuant to subsection (c) of this
section shall be assessed a penalty of one percent of the total
taxes due in such prior month.

(e) Brewers and distributors and operators of brewpubs shall
keep all records which relate to the sale or purchase in this state
of nonintoxicating beer for a period of three years unless written
approval for earlier disposal is granted by the Tax Commissioner.

(f) Brewpubs shall keep such records as required by the
federal government and may, in lieu of the recordkeeping and
reporting requirements contained in subsections (a) through (e) of
this section, file copies of the federal reports contemporaneously
with the Tax Commissioner at the time of such filings with the
federal government. The filing of duplicate copies of the federal
reports with the State Tax Commissioner shall be deemedis
considered as compliance with subsections (a) through (e) of this
section.

(g) Effective Date –- The changes set forth herein to this
section of this article become effective July 1, 2011.

NOTE: The purpose of this bill is to increase the barrel tax
on nonintoxicating beer.

Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.